- Centurion Member
- Posts: 179
- Joined: Fri Apr 12, 2013 4:47 pm
- Location: Indianapolis, IN
Having a wide variety of credit accounts (loans, credit cards, etc) builds a stronger credit profile than just one credit card and an auto loan. While having a good history with your auto creditor *does* help, having a good variety of credit cards to build up your profile does help. To continue building your score, I'd suggest a good rewards card like a Chase Sapphire or Freedom card. Discover is excellent and I have personal experience with their customer support--they really are wonderful. You can't go wrong with AMEX, but since you already have a Gold card, I'd suggest either the BCE or another bank for a premier rewards card.
For the credit limit increases, you are unlikely to get them without showing the lender you have the ability to pay much more than the minimum. If your minimum is $30 and you have a balance of $1000, pay $100 if you can. More is better, of course. Don't worry so much about not carrying a balance, but instead just try to have your balance in the 1-10% range before the end of your billing cycle. Using the card responsibly and regularly, all while making much more than the minimum payment, is a sure way to get CLIs, assuming you are dealing with a bank that will give them to you. Capital One, for instance, is horrible for CLIs. The thing about CLIs is that they aren't always a hard pull. Only hard pulls hurt your score. Soft pulls don't hurt your score.
I'd highly recommend being patient, letting your cards age, and let them report a healthy account. In about 6 months, app for one or two really good cards without annual fees. Then, every 6 to a year you should ask for a credit limit increase with a SOFT PULL. Unless you can get a $3k+ increase, I would not take a hard pull. I would not go for high interest cards, because high interest cards are usually sub prime cards with low limits (Cap1 limits their subprime cards to $3000 in most cases). With a healthy AMEX Gold card and a good history of at least 2 years, you shouldn't have problems getting prime cards with 8-15% APRs and $5k+ limits.
Scores on the mend...
FICO: 650 (Discover/TU, 6/23/2016)
Cards I Use Citi Double Cash, Chase Amazon, Capital One QuickSilver
Sock Drawer Discover IT, Citi Diamond Preferred, AE Visa, QuickSilver One, Walmart CC, CareCredit, CreditOne (keeping for history for now)
Short Goal Reach 680